Real estate disclosure reporting method

ABSTRACT

A real estate disclosure reporting method identifies a condition category, creates a disclosure form and lists items of disclosure on a disclosure form. The items of disclosure relate to the condition category. The reporting method also researches a particular property to determine known items of disclosure, indicates the known items of disclosure on the disclosure form and generates a report of the known items of disclosure.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application is a continuation of U.S. patent application Ser. No.10/873,992, filed Jun. 22, 2004, titled Real Estate Disclosure ReportingMethod, scheduled to issue Sep. 1, 2009 as U.S. Pat. No. 7,584,167;which is a continuation of U.S. patent application Ser. No. 09/663,152,now U.S. Pat. No. 6,766,322, filed Sep. 15, 2000, titled Real EstateDisclosure Reporting Method; which relates to and claims the benefit ofU.S. Provisional Application No. 60/213,778 filed Jun. 23, 2000, titledReal Estate Disclosure Reporting Method. All of the aforementioned priorpatents, patent applications and provisional patent applications arehereby incorporated by reference herein.

BACKGROUND OF THE INVENTION

The disclosure of real estate conditions is a critical element in anyproperty transaction and plays an increasingly important role forproperty owners and their attorneys, agents, brokers, appraisers,inspectors and other consultants. Federal and state laws, lenderpolicies and regulations, as well as demands by prospective buyerscreate a considerable demand for the full disclosure of any potentialdetrimental conditions. Notwithstanding government requirements, thereare several reasons that a full real estate disclosure is beneficial.Buyers obtain better knowledge of what they are purchasing, and a fulldisclosure helps shield sellers, brokers and appraisers from futureliability. Also, lenders obtain a better understanding of theircollateral asserts. Real estate disclosure does not put any dollarfigure on any conditions. Rather, a proper disclosure report simplyinforms the user of the report that certain conditions are known orbelieved to exist.

SUMMARY OF THE INVENTION

Historically, the disclosure of conditions that might impact propertyvalues or purchase decisions has been a fragmented topic. There does notexist a single, universal disclosure report. Some states requiredisclosure and others do not. Appraisers and property inspectorsdisclose some conditions but not all of them. Most real estateprofessionals issue reports with long boilerplate disclaimersspecifically citing that they did not investigate a variety of issues,even though these issues could have a material impact on the property'svalue or the decision to buy or lend.

One aspect of a real estate disclosure reporting method comprisesidentifying a condition category, creating a disclosure form, listingitems of disclosure, researching a particular property, indicating theknown items of disclosure on the disclosure form and generating a reportof the known items of disclosure. The items of disclosure relate to thecondition category. The researching determines known items ofdisclosure. In various embodiments, the condition category is at leastone of site, environmental and natural conditions. The researching stepaccesses public agency databases over the Internet. The indicating stepidentifies an indicator area proximate each of the items of disclosureand marks the indicator area according to the known items of disclosure.The generating step downloads a report on electronic media via theInternet. The site conditions comprise at least one of landslide andliquefaction. The environmental conditions comprise at least one ofSuperfund, LUST and oil and gas well conditions. The natural conditionscomprise at least one of flood and earthquake conditions.

Another aspect of a real estate disclosure reporting method comprisesresearching a particular property to determine a plurality of knownitems of disclosure, compiling the known items of disclosure onelectronic media, identifying at least a portion of the known items ofdisclosure with a condition category and downloading the electronicmedia to a user over the Internet. In various embodiments, theresearching comprises accessing at least one database over the Internet.The at least one database comprises at least one of a Federal Superfunddatabase and a Leaking Underground Storage Tank (LUST) database. Theknown items of disclosure comprise at least one of flood, earthquakefaults, landslide and liquefaction conditions. The electronic mediautilizes a markup language for downloading to a user over the Web. Theknown items of disclosure are designated on the electronic media withone of a checkmark or an “X” placed within a check box.

A further aspect of a real estate disclosure reporting method comprisesidentifying a subject property, accessing databases over the Internet,where the databases have subject property related data, determiningknown items of disclosure regarding the subject property from thedatabases, reporting the known items of disclosure on electronic mediaand downloading the electronic media to a user over the Internet. Invarious embodiments, the databases comprise at least one of governmentrecords and police records. The known items of disclosure comprise atleast one of site conditions, natural conditions and environmentalconditions. The electronic media report comprises a web page formattedwith a markup language. The reporting comprises indicating the knownitems of disclosure with a designation placed within a check box. Thedownloading comprises communicating the web page to a user browser.

BRIEF DESCRIPTION OF THE DRAWINGS

FIGS. 1A-B are a general block diagram of a real estate disclosurereporting method;

FIG. 2 is a detailed block diagram of information sources forresearching a property;

FIGS. 3A-B are a real estate disclosure form and a supplementaldisclosure form, respectively;

FIGS. 4A-B are a flowchart of the ID (item of disclosure) compilingprocess;

FIGS. 5A-B are a flowchart of the category defining process;

FIGS. 6A-B are a flowchart of the ID classifying process;

FIGS. 7A-B are a flowchart of the form creating process;

FIGS. 8A-C are a flowchart of the property researching process;

FIG. 9 is a flowchart of the report generating process;

FIGS. 10A-J are tables of ID categories and associated priority IDs;

FIG. 10A is a table listing IDs associated with general conditions;

FIG. 10B is a table listing IDs associated with transactionalconditions;

FIG. 10C is a table listing IDs associated with distress conditions;

FIG. 10D is a table listing IDs associated with legal conditions;

FIG. 10E is a table listing IDs associated with external conditions;

FIG. 10F is a table listing IDs associated with building conditions;

FIG. 10G is a table listing IDs associated with soil conditions;

FIG. 10H is a table listing IDs associated with environmentalconditions;

FIG. 10I is a table listing IDs associated with conservation conditions;and

FIG. 10J is a table listing IDs associated with natural conditions; and

FIGS. 11A-E are tables listing IDs that can be determined fromresearching particular types of secondary information sources;

FIG. 11A is a table listing IDs from government records;

FIG. 11B is a table listing IDs from police records;

FIG. 11C is a table listing IDs from Internet databases;

FIG. 11D is a table listing IDs from property profiles; and

FIG. 11E is a table listing IDs from other secondary informationsources.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

Real Estate Disclosure Reporting

FIGS. 1A-B illustrate an embodiment of the real estate disclosurereporting method. The reporting method 100 has an ID compiling process110, a category defining process 120, an ID classifying process 130, aform creating process 140, a property researching process 150, and areport generating process 160. The compiling process 110 has as inputsvarious disclosure requirements 170 and outputs a master compilation ofitems of disclosure (IDs) 116. The disclosure requirements 170 providethe legal and ethical framework for a variety of conditions that realestate professionals should disclose to parties that purchase or lend ona property. These disclosure requirements 170 include conditions thatshould be disclosed under federal law 172 and various state laws 174,conditions that lenders typically consider when deciding to provide aloan secured by property 176 and conditions that otherwise might impactthe market value of property 178. The ID compiling process 110 utilizesthese federal 172, state 174, lender 176 and market disclosurerequirements 178 to identify various real estate related conditions andto determine those conditions which should be disclosed. These masterIDs 116 include priority IDs 112, non-priority IDs 114, and associateddefinitions 118. The priority IDs 112 determined by a particularapplication of the ID compiling process 110 include over one hundredconditions, listed in FIGS. 10A-J and described in the Priority IDGlossary, Appendix A. Additional IDs are described in the Non-PriorityID Glossary, Appendix B. The ID compiling process 110, the priority IDs112 and the non-priority IDs 114 are described in further detail withrespect to FIGS. 4A-B, below.

As shown in FIG. 1A, the ID classifying process 130 has conditioncategories 122 and the priority IDs 112 as inputs and categorized IDs132 as an output. The category defining process 120 generates thecondition categories 122, which are general descriptions of various realestate conditions. The ID classifying process 130 associates varioussubsets of the priority IDs 112 with each of the condition categories122, resulting in the categorized IDs 132. Advantageously, thecategorized IDs 132 provide a tool for systematically performing theproperty researching process 150. In one embodiment, there are tencondition categories 122. The IDs can be classified according to theseten categories 122 as described with respect to FIGS. 10A-J, below. Thecategory defining process 120 is described in further detail withrespect to FIGS. 5A-B, below. The ID classifying process 130 isdescribed in further detail with respect to FIGS. 6A-B, below.

Also shown in FIGS. 1A-B, the property researching process 150 utilizesvarious information sources 180 and the categorized IDs 132 as inputs,applies these inputs to research a particular property of interest andoutputs known IDs 152 for that property. The information sources 180 arecharacterized as primary sources 182, secondary sources 184 andthird-party sources 188. Primary information sources 182 are theproperty itself and the property owner. Secondary information sources184 comprise various publicly available records, databases anddocuments, which can be accessed for free or for a fee through anagency. Third-party information sources 188 comprise various reports,studies, plans, surveys and other documents that have been compiled bythird-parties. The property researching process 150 utilizes theinformation sources 180 to determine if any of the IDs are known toexist and to garner associated details with respect to those IDs. Theresulting known IDs 152 are the collective information gathered fordisclosure of a property's condition. The information sources 180 aredescribed in further detail with respect to FIG. 2 and FIGS. 11A-E,below. The property researching process 150 is described in furtherdetail with respect to FIGS. 8A-C, below.

FIG. 1A further shows that the report generating process 160 hasdisclosure forms 142, 144 and known IDs 152 as inputs and outputsdisclosure reports 162, 164. The form creating process 140 generates aprimary disclosure form 142 and a supplemental disclosure form 144. Theprimary disclosure form 142 displays priority IDs 112 according tocondition categories 122 along with a convenient way of indicating knownIDs 152. The supplemental disclosure form 144 provides blank areas forentering disclosure details, provides pre-printed legal disclaimers andprovides signature lines. The disclosure forms 142, 144 are advantageoustools for systematically performing the report generating process 160.The report generating process 160 involves documenting informationregarding the known IDs 152 into a primary disclosure report 162 andsupplemental reports 164. The primary disclosure report 162 provides alogical organization and presentation of a property's condition basedupon the known IDs 152. The supplemental reports 164 document detailsassociated with particular ones of the known IDs 152, provide notice oflegal disclaimers, and are signed to acknowledge the disclosedconditions. The report generating process 160 could be partially orwholly incorporated within the property researching process 150 if thedisclosure forms 142, 144 are completed as the information sources 180are consulted. In that case, completed disclosure forms 142, 144incorporating the known IDs 152 become partially or wholly completeddisclosure reports 162, 164. Particular embodiments of the disclosureforms 142, 144 are described with respect to FIGS. 3A-B, below. The formcreating process 140 is described in further detail with respect toFIGS. 7A-B, below. The report generating process 160 is described infurther detail with respect to FIG. 9, below.

Information Sources

FIG. 2 illustrates the information sources 180 used in the researchingprocess 150 (FIG. 1A). As shown in FIG. 2, primary information sources182 are utilized to determine if any IDs are known for a specificproperty. In particular, a researcher, typically a real estateprofessional, conducts a property walk-through 201, obtaining personalknowledge of any IDs through direct observation of the property itselfand the area surrounding the property. Also, the researcher conducts aninterview 203 of the property owner, obtaining the owner's personalknowledge of any IDs for the property and the surrounding area. Theseprimary sources are applicable to any of the categories of known IDs152.

Shown in FIG. 2, secondary information sources 184 are also utilized todetermine if any IDs are known for a specific property. In a particularembodiment, these secondary sources 184 include government records 210,police records 220, Internet-searchable databases 230, property profiles240 and other secondary information 250 that is publicly available andrelevant to the property, such as association dues, CC&R's, maps and MLSinformation. As examples, a researcher might visit a city planningdepartment to access government records regarding zoning, buildingpermits and similar IDs. Also, the researcher could contact a titlecompany for a property profile to determine assessments, bonds, buildingand land area, title ownership and similar IDs. Further, the researchercould visit the local police depart to request information under Megan'sLaw, records of crime activity on or near the property, and similar IDs.In addition, the researcher could utilize the services of areal-estate-based Internet information provider, for a fee, to access adatabase of location-specific real estate information. These secondarysources 184 are applicable to any of the categories of the known IDs152. IDs that can be researched utilizing each of these secondarysources 184 are described with respect to FIGS. 11A-E, below.

FIG. 2 further shows that various third-party information sources 188are used to determine if any IDs are known for a specific property. In aparticular embodiment, these third-party sources 188 include sitesurveys, architectural plans and appraisal reports that can determineknown IDs categorized as general conditions 205. Loan documents andescrow documents can determine known IDs categorized as transactionalconditions 215. Police reports can determine known IDs categorized asdistress conditions 225. Insurance policies, leases and contracts andtitle reports can determine known IDs categorized as legal conditions235. Aerial photos can determine known IDs categorized as externalconditions 245. Property inspection reports and termite reports candetermine known IDs categorized as building conditions 255. In addition,property inspection reports along with soil reports can determine knownIDs categorized as site conditions 265. Phase I-II-III reports andenvironmental reports can determine known IDs categorized asenvironmental conditions 275. Environmental impact reports can determineknown IDs categorized as conservation conditions 285, and specialstudies can determine known IDs categorized as natural conditions 295.

Disclosure Forms

FIGS. 3A-B illustrate disclosure forms 300, 350, which can be used forspecifying known IDs 152 (FIG. 1A) and providing a disclosure report162, 164 (FIG. 1A), as described above. FIG. 3A illustrates a primarydisclosure form 300, which is partitioned into an introduction section301 and multiple categorized sections 303. The introduction section 301has a background portion 310 and an information source portion 320. Thebackground portion 310 provides information regarding the report user,the disclosure date, property location and the property type, such ascommercial or residential. The information source portion 320 has a listof the primary sources 182, secondary sources 184 and third-partysources 188, as described with respect to FIG. 2, above. Proximate toeach of the listed sources 182, 184, 188 is an indicator area 307 forspecifying that a particular source was utilized for determining knownIDs. The indicator area 307 may be a check box for placing a checkmarkor an “x.”

As shown in FIG. 3A, each of the categorized sections 303 correspond toone of the condition categories 122 (FIG. 1A) described above.Accordingly, each of the categorized sections 303 has a label 305 thatidentifies the particular condition category 122 (FIG. 1A) to which thecategorized section 303 corresponds. Listed within each of thecategorized sections 303 are categorized IDs 132 corresponding to thesection label 305. Thus, each of the categorized sections 303 provide alisting of associated categorized IDs 132. Proximate to each of thecategorized IDs 132 is either an indicator area 307 for specifying thata categorized ID 132 is known or a comment area 308 for entering a noteregarding a categorized ID 132. The indicator area 307 may be a checkbox for placing a checkmark or an “x,” and the comment area 308 may beone or more underlines. Also provided in most of the categorizedsections 303 are global indicators 309 for specifying that none of thelisted IDs in a categorized section 303 are known or are as noted. Eachcategorized section 303 also provides a general indicator marked “Other”for noting known non-priority IDs, which would not be listed. Commentsspecifying such generally indicated IDs can be provided on asupplemental disclosure form 350 (FIG. 3B), described below.

FIG. 3B illustrates a secondary disclosure form 350, which ispartitioned into a comments section 351, a notices section 353 and asignatures section 355. The comments section 351 provides a lined space360 for noting specifics regarding a non-priority ID 114 (FIG. 1A) orother condition that is flagged on the primary disclosure form 300 under“Items as noted.” The comments section 351 could also be used to providecommentary regarding a flagged priority ID 112 (FIG. 1A). The noticessection 353 contains preprinted legal disclaimers 370. The signaturessection 355 contains a “conditions accepted” signature block 380 for aparty's acknowledgement that they have been given notice of the listedconditions. The signatures section 355 also contains “prepared by” and“supervisor” signature blocks 390 for professional acknowledgement ofproperty inspection and associated research in conjunction withcompletion of the disclosure forms 300 (FIG. 3A), 350.

Compiling IDs

FIG. 4A illustrates the first part of the ID compiling process 110.Initially, disclosure requirements 170 are input 402. Potential IDs areidentified 404, for example using tentative ID labels and descriptionsbased upon the real estate conditions the IDs disclose.Comprehensiveness is tested 410 to determine if the IDs meet all of thedisclosure requirements 170. If not, additional IDs are identified 412and the IDs are retested 410 to determine if all disclosure requirements170 are met. If so, ID breadth is tested 420 to determine if theidentified IDs are sufficiently narrow in scope to adequately describe areal estate condition to an interested party. If not, then eachoverly-broad ID is recharacterized 422 as two or more IDs of narrowerscope, and comprehensiveness is retested 410. If so, mutualexclusiveness is tested 430 to insure that the IDs are not overlappingor redundant in scope. If any IDs are not mutually exclusive, thenoverlapping IDs are recharacterized 432, for example using new tentativelabels and descriptions as necessary, redundant IDs are eliminated 434,and comprehensiveness is retested 410.

FIG. 4B illustrates the last part of the ID compiling process 110,continuing from FIG. 4A. If the IDs are all mutually exclusive, the IDsare named and defined 440, which generates a compilation or list ofmaster IDs 116 and associated definitions 118. Each of the master IDs116 is compared 450 with the disclosure requirements 170 (FIG. 4A). Ifan ID relates to Federal or state requirements 452, the ID is identifiedas a priority ID 460. If not, it is determined if the ID relates tocommon lender or market requirements 454. If so, the ID is identified asa priority ID 460, otherwise, it is not. It is then determined 470, ifall of the master IDs 116 have been compared with the disclosurerequirements 170 (FIG. 4A). If not, a different ID is compared 450 withthe disclosure requirements 170 and the above described processcontinues. Otherwise, the ID compiling process is complete.

Defining Categories

FIG. 5A illustrates the first part of the category defining process 120.Initially, priority IDs are inputted 502 from a compilation or list ofpriority IDs 112. Commonalities are identified 504 among the priorityIDs 112 from a review of priority ID names and definitions. Then,initial categories are defined 508, providing tentative descriptions ordescriptive labels, for example. Comprehensiveness is tested 510 todetermine if the defined categories have sufficient scope to include orcover all of the priority IDs 112. If not, additional categories aredefined 512 and category comprehensiveness is retested 510 to determineif all priority IDs 112 are included or covered. If the definedcategories are comprehensive, then breadth is tested 520, 530 todetermine if the defined categories are sufficiently broad or narrow inscope to adequately classify the priority IDs into categories. This mayrequire an iteration of the ID classifying process 130, described withrespect to FIGS. 6A-B, below. For example, if there are dozens ofcategories with only a few IDs being classified into each category or ifthere are only a few categories with many IDs being classified into eachcategory, the resulting forms and the associated research and disclosureprocesses described herein may be less useful. Broadness is tested 520to determine if there are too many categories or if the categorydefinitions are too narrow in scope. If so, categories are combined orredefined into broader categories 522 and the comprehensiveness test 510is repeated. Otherwise, narrowness is tested 530, to determine if thereare too few categories or if the category definitions are too broad inscope. If so, categories are split or redefined into narrower categoriesand the comprehensiveness test 510 is repeated.

FIG. 5B illustrates the last part of the category defining process 120,continuing from FIG. 5A. After comprehensiveness is tested 510 (FIG. 5A)and breadth is tested 520, 530 (FIG. 5A), category logic is tested 540to determine if all the priority IDs can be rationally or sensiblyassociated with the defined categories. This may also require aniteration of the ID classifying process 130, described with respect toFIGS. 6A-B, below. If the defined categories do not allow logical IDclassification, the categories are redefined 542 and thecomprehensiveness test 510 (FIG. 5A) and breadth tests 520, 530 (FIG.5A) are repeated. If the defined categories are logical, the categoriesare given generally descriptive names 550, generating a compilation orlist of condition categories 122 to complete the category definingprocess 120. As noted above, the category defining process 120 may beiterative with the ID classifying process 130, described with respect toFIGS. 6A-B, immediately below.

Classifying IDs

FIGS. 6A-B illustrate an embodiment of the ID classifying process 130for a particular set of condition categories 122 (FIG. 1A). As shown inFIG. 6A, initially, condition categories and priority IDs are inputted602 from a compilation or list of priority IDs 112 and a compilation orlist of condition categories 122. Then, priority IDs are tested todetermine if any impact all property 610. If so, these IDs are assignedto the general category 612. Next, priority IDs are tested to determineif any are a one time issue for a buyer 620. If so, these IDs areassigned to the transactional category 622. Following that, priority IDsare tested to determine if any are environment related 630. If so, theseIDs are assigned to the environmental category 632. Next, priority IDsare tested to determine if any are conservation related 640. If so,these IDs are assigned to the conservation category 642. Then, priorityIDs are tested to determine if any are related to the site 650. If so,these IDs are assigned to the site category 652.

As shown in FIG. 6B, continuing the ID classifying process 130, priorityIDs are tested to determine if any are related to natural conditions660. If so, these IDs are assigned to the natural category 662.Following that, priority IDs are tested to determine if any are relatedto building conditions 670. If so, these IDs are assigned to thebuilding category 662. Next, priority IDs are tested to determine if anyare related to conditions external to the property 680. If so, these IDsare assigned to the external category 682. Then, priority IDs are testedto determine if any are related to legal obligations 690. If so, theseIDs are assigned to the legal category 692. Finally, all remaining, i.e.unclassified priority IDs, are assigned to the distress category 694.

As shown in FIGS. 6A-B, the ID classifying process 130 advantageouslyassigns the priority IDs 112 to condition categories 122 in apredetermined sequence. In this manner, IDs that can be classifiedwithin any of several condition categories are resolved into a singlecondition category. In the particular embodiment shown, the generalcategory test 610 is performed first, the transactional category test620 is performed second and so on until assignment to the distresscategory 694 is performed last by default. As such, an ID that might beclassified, for example, as either environmental or external, such as anuclear plant, would be classified as environmental because the processperforms the environmental category test 630 before the externalcategory test 680. That is, assignment of IDs 112 to conditioncategories 122 is prioritized according to this predetermined sequence.

Creating Forms

FIGS. 7A-B illustrate the form creating process 140. FIG. 7A illustratesthe creation of a primary real estate disclosure form 142, and FIG. 7Billustrates the creation of a supplemental real estate disclosure form144. As shown in FIG. 7A, blank media is obtained 702, which may be, forexample, physical paper, magnetic or other storage media or electronicmedia, such as a web page formatted with HTML or any other markuplanguage for downloading to a browser over the Internet. In addition,categorized IDs are inputted 704 from a compilation or list ofcategorized IDs 132. Further, the media is partitioned 710, and thepartitions are labeled 720 according to the condition categoriescorresponding to the categorized IDs 132. Also, the categorized IDs arelisted within the partitions according to assigned categories 730.Categories are assigned according to the ID classifying process 130(FIGS. 6A-B), described above. Prompts are provided proximate thecategorized IDs 740. A prompt may be, for example, a blank box forplacing an “x” or checkmark to indicate a known ID. Finally, the primaryreal estate disclosure form is stored and/or printed 750. Copies of theresulting primary disclosure form 142 are then available for the reportgenerating process 160 (FIG. 9), described below and to assist inconducting all or part of the property researching process 150 (FIGS.8A-C), also described below.

As shown in FIG. 7B, initially blank media is obtained 706, and themedia is partitioned 708. As described above, the media may be physicalpaper, magnetic or other storage media, or electronic media, forexample. Further, one or more of the partitions are labeled for comments760, one or more of the partitions are labeled for legal notices anddisclaimers 770, and one or more of the partitions are labeled forsignatures 780. Finally, the supplemental real estate disclosure form isstored and/or printed 790. Copies of the resulting supplementaldisclosure form 144 are then available for the report generating process160 (FIG. 9).

Researching Properties

FIGS. 8A-C illustrate the property researching process 150. As shown inFIG. 8A, initially, categorized IDs are inputted 802 from a compilationor list of categorized IDs 132. Primary research is performed 810,described with respect to FIG. 8B, below. Also, secondary research isperformed 830, described with respect to FIG. 8C, below. Further, anyavailable third-party sources are accessed 850. Finally, any known IDsare documented 870, as determined from the primary 810, secondary 830and third-party 850 research, to generate a compilation or list of knownIDs 152 and associated comments or notes.

FIG. 8B illustrates the primary research portion 810 of the propertyresearching process 150 (FIG. 8A). The researcher notes any personalknowledge they have of IDs 812. A property walk-through is performed814, where the researcher notes any obvious IDs. Further, the researcherinterviews the property owner and notes the owner's knowledge of any IDs818.

FIG. 8C illustrates the secondary research portion 830 of the propertyresearching process 150 (FIG. 8A). The researcher accesses propertyprofile databases 832, which may be available over the Internet, anddownloads a property profile 834. The researcher also accesses any otherdatabases available over the Internet 836 and downloads anyproperty-related data 838 accordingly. The researcher also visits local,state or Federal government offices 842 to review any property-relatedrecords that may be available. Also, the researcher visits local lawenforcement offices 844 to review, for example, their records of anyproperty-related incidents. Finally, the researcher accesses any otherproperty-related data 846, such as maps, market studies, homeownerassociation records and multiple-listing service (MLS) documents.

Generating Reports

FIG. 9 illustrates the report generating process 160. Initially, knownIDs are inputted 902. These known IDs 152 are compiled during theproperty researching process 150 (FIGS. 8A-C) and may include, forexample, records and other printed data, notes and recollections of aresearcher, and checkmarks or other indications and comments that aresearcher has made on the primary and supplemental real estatedisclosure forms 142, 144. Also, the primary and supplemental realestate disclosure forms are inputted 904, 906. The primary andsupplemental real estate disclosure forms 142, 144 are generated fromthe form creating process 140 (FIGS. 7A-B), described above. Knownpriority Ds are indicated on the primary disclosure form 910. Further,known non-priority IDs are generally indicated on the primary disclosureform 920, such as marking “Other,” and comments regarding these knownnon-priority IDs are made on the supplemental disclosure form 930. Thecompleted primary disclosure form the completed supplemental disclosureforms are provided 940, 950 as a primary real estate disclosure report162 and associated supplemental real estate disclosure reports 164,along with other relevant attachments, e.g. maps. Real estateprofessionals can then present these generated reports 162, 164 tovarious interested parties for signature and satisfaction of therequirements, obligations or needs to disclose the condition of aparticular property.

Categorized IDs

FIGS. 10A-J illustrate categorized IDs 132, described generally withrespect to FIG. 1A, above. In one embodiment, ten condition categories122 (FIG. 1A) are determined. These are (I) general; (II) transactional;(III) distress; (IV) legal; (V) external; (VI) building; (VII) site;(VIII) environmental; (IX) conservation; and (X) natural conditions. Thegeneral condition category encompasses conditions that impact allproperty. FIG. 10A illustrates general categorized IDs 1005. Thetransactional condition category encompasses one-time issues for abuyer. FIG. 10B illustrates transactional categorized IDs 1015. Thedistress condition category encompasses any tragedy or perceived futurepotential tragedy associated with a property. FIG. 10C illustratesdistress categorized IDs 1025. The legal condition category encompasseslegal obligations on the part of a property owner. FIG. 10D illustrateslegal categorized IDs 1035. The external conditions category encompasses“externalities” that may have an influence on a property. FIG. 10Eillustrates external categorized IDs 1045. The building conditioncategory encompasses the design, construction or condition of a buildingor a building's improvements. FIG. 10F illustrates building categorizedIDs 1055. The site condition category encompasses the geotechnicalcondition of a property. FIG. 10G illustrates site categorized IDs 1065.The environmental condition category encompasses actual or potentialcontamination issues. FIG. 10H illustrates environmental categorized IDs1075. The conservation condition category encompasses wildlife orhabitat issues. FIG. 10I illustrates conservation categorized IDs 1085.Natural conditions encompass any force of nature. FIG. 10J illustratesnature categorized IDs 1095.

Secondary Sources

FIGS. 11A-E illustrate IDs 112 that can be researched by accessingsecondary research sources 184 (FIG. 1B), which are described withrespect to FIGS. 1B and 2, above. In one embodiment, there are fivetypes of secondary information sources 184 (FIG. 1B). These aregovernment records 210, police records 220, Internet databases 230,property profiles 240 and other sources 250. FIG. 11A illustrates thoseIDs that can be researched by accessing government records 210. FIG. 11Billustrates those IDs that can be researched by accessing police records220. FIG. 11C illustrates those IDs that can be researched by accessingInternet databases 230. FIG. 11D illustrates those IDs that can beresearched by reviewing property profiles 240. FIG. 11E illustratesthose IDs that can be researched by accessing other secondaryinformation sources 250.

A real estate disclosure reporting method has been disclosed in detailin connection with various embodiments. These embodiments are disclosedby way of examples only and are not to limit the scope of the claimsthat follow. One of ordinary skill in the art will appreciate manyvariations and modifications.

APPENDIX A Priority ID Glossary

-   ADA. Americans with Disabilities Act, which places restrictions on    the use of buildings that, are used by the public to facilitate    easier access by people with disabilities.-   airport. Any airport, such as municipal, national, international or    military, that creates noise contours over other properties.-   arenas. A large stadium for hosting sporting or other events.-   arson. The act of deliberately setting fire to a property.-   asbestos. Natural mineral mined from rock and used in construction.    Properties include noncombustibility, corrosion resistance, high    tensile strength, and both thermal and electrical insulating    capability.-   assemblage. A collection of two or more parcels by one property    owner. The buyer may (but not always) pay a premium over the market    value because of the buyer's special motivations associated with the    buyer's use of the combined parcels.-   assessments. An property tax or bond encumbrance.-   association dues. The requirements to pay dues to an association    that is a legal obligation of the property owner.-   auction. The sale of property by sale to the highest bidder.-   avalanche. The sudden and swift flow of a mass of ice, snow, soil,    rock, or other material down a hillside or mountainside.-   bankruptcy. A sale of property due to the financial involvency of    it's owner who has filed for bankruptcy protection.-   basin. A low-lying area used to collect water or other fluids.-   bonds. A loan where the payments are a legal obligation of the    property owner.-   building area. The square footage of the improvements as defined by    various real estate organizations.-   build to suit. Improvements that are constructed to the    specifications of a specific buyer or tenant.-   burglary. A property where there has been a history of robbery or    burglary.-   CC&Rs. The conditions, convenent and restrictions of a community    association.-   cell am/fm tower. A communications tower that is used to transmit    radio and cell telephone calls.-   cemetery. Proximity or view of a cemetery or burial site.-   CERCLA. Comprehensive Environmental Response, Compensation, and    Liability Act of 1980. Often referred to as the Superfund Act. This    are further delineated between active (still in use) and inactive    (no longer in use) sites.-   college. A university or other campus for high learning.-   conservation area. An area designated as being sensitive in terms of    its natural resources.-   construction defect. Improvements that have been improperly    constructed.-   cracking. Any cracking to the floors or other improvements. criminal    activity. Any behavior on a property that is illegal.-   creek/pond. The existence of a pool of water or small water    tributary on a property.-   crime scene. A property that has been the scene of criminal    activity.-   cultural resource. Any site or improvements on a property that have    a cultural significance, such as ancient burial grounds.-   dam. Proximity to a dam or a dam inundation risk area.-   daycare. A registered facility to provide daytime care to pre-school    age children.-   death on property. A property that was the scene of a human death.-   deed restriction. A recorded restriction on the use of the property.-   double escrow. An escrow to a buyer who immediately transfers the    property to a second buyer.-   drainage. The sheet water flow and ability of a site to divert and    drain excess water.-   drug activity. Any illegal drug dealing or use on a property.-   earthquake fault. The area along which the ground or subsurface    areas move, creating earthquakes.-   easement. The non-fee simple estate ownership to utilize a site, or    a portion of a site, in some defined manner.-   EIFS. Exterior Insulation and Finishing Systems, which are    pre-formed stucco-textured sheets.-   eminent domain. The taking of property, as allowed under the U.S.    Constitution, for the public good and upon payment of just    compensation.-   encroachment. An improvement that is constructed in such a manner    that it crosses the property line or otherwise encroaches upon an    adjacent property.-   endangered species. A plant or animal that inhabits a property,    where it appears on a governmental list because of its venerability    to extinction.-   entitlements. The development process and corresponding approvals    for land development.-   estate sale. The sale of property upon the death of it's owner.-   expansion. The enlargement of soils due to moisture inundation or    another natural event.-   FDIC sale. A sale by the Federal Deposit and Insurance Corporation.-   Federal historic site. A property that has been designated as a    historic site. This designation may restrict the use of the    property.-   Federal superfund. Sites that have been designated as having    particularly large environmental contamination issues.-   feng shui. An ancient Asian belief, in part relating to the    orientation and planning of a property site and the improvement    layout.-   fill soil. Soils that are used to fill in low-lying areas.-   fire hazard. Areas or zones that are prone to fires.-   fire sprinklers. Typically ceiling-mounted water sprinklers that are    activated in the event of a fire.-   flood. An event where there is an excessive accumulation of water on    a property.-   ground lease. The rental of a site for a specified period and at    specified terms.-   habitat area. A property that has been designated as a special    conservation area due to it's habitat.-   historic site. A property that has been designated as a historic    site by a governmental entity.-   homicide. A murder that occurred on a property.-   hurricane. A violent storm that is capable of destroying real estate    improvements.-   infestation. An invasion of insects, plants, or animals that    disrupts a property's use or value.-   insurance claim. A property where an insurance claim has been filed.-   jail or prison. Proximity to a jail, prison or other detention    facility.-   land area. The square footage or acreage of a parcel of land.-   landslide. A sudden or creeping movement of earth downslope.-   lead-based paint. Paint that has lead added as one of its    ingredients. Considered hazardous if ingested.-   leakage. An unintended seepage of fluids, such as water or gasoline,    that requires repairs or remediation.-   lease. A property that is encumbered by a lease.-   legal action. A property where there is or has been a legal claim    that impacts the property.-   legal non-conforming. A property that was legally constructed but    where the zoning or other use restrictions have subsequently changed    and would not allow the current improvement to be built if the    current structure was removed or destroyed.-   liquefaction. The amalgamation or settlement of soils, such as    resulting from a seismic event.-   loans. Funds that have been borrowed where a property is used to    secure the debt.-   LUST. Leaking underground storage tank.-   Megan's Law. A federal law that requires states to facilitate the    disclosure of the location of convicted sexual molesters.-   metals. A classification of possible contaminants such as mercury or    lead.-   military airport. Proximity to a military base with an airport.-   molds. A growth of fungus or other molds on a property, typically in    cold or damp areas.-   moratorium. A stop or restriction of development.-   movement. The movement or shifting of soils.-   national parks. A open recreational area that has been designated    for park use by federal authorities.-   natural resources. Amenities or attributes of a property that    naturally occur, such as trees, wildlife, etc.-   nonconforming use. Improvements that are not in line with    surrounding uses, such as a jail in the middle of a residential    neighborhood.-   non-permit. Building or grading that was completed without a    building permit.-   nuclear plants. Proximity to a nuclear-powered electric generating    facility.-   occupancy. The occupants of a property, such as owner-occupied,    tenant, vacant, etc.-   odors. Any foul or unusual odors that can be detected.-   options. The right to purchase or lease a property.-   owner of title. The property owner, according to the title documents    or deeds.-   pesticide. A substance that controls agricultural pests, such as    demeton, guthion, malathion, mirex, methoxychlor, and parathion.-   places of worship. Churches, synagogues, temples or other houses of    worship.-   ponding. The puddling of water on a site or its improvements due to    improper water sheet flow.-   power lines. Electrical power lines or power line corridors that may    emit Electro-magnetic fields.-   probate. The sale of real estate during the probate period following    the owner's death.-   radioactive. Having unstable atoms that decay or break down to    another kind of atom. The process emits high-energy particles. For    example, radium decays to form radon. Radiation includes high-energy    particles, which include alpha and beta particles and gamma rays.-   radon. A colorless and odorless gas that is emitted from decaying    uranium deposits. The gas may enter improvements through cracks and    create a health hazard if inhaled.-   railway. The right for the construction, maintenance, and operation    of a train on a property.-   REO Sale. The sale of foreclosed real estate by the lender.-   repairs needed. Any deferred maintenance or repairs that are    required but uncompleted on a property.-   right of refusal. The proprietary right to be offered a property for    sale or lease before it can be another offer can be accepted.-   sales history. The previous sales date and price of a property, if    available.-   sale-leaseback. A transaction where the property owner sells the    property and immediately leases back the same property.-   schools. Elementary, middle or high schools.-   septic tanks. An on-site system or cesspool to process wastes.-   settlement. The sinking of soils, such as those that have not been    adequately compacted.-   sewage plant. Proximity to a sewage treatment facility.-   shoreland. A site that is located by a body of water.-   short sale. The sale of a property where the proceeds come short of    the outstanding loan balance.-   sinkhole. An opening in the earth created by either natural or    man-made subterranean activities. For example, if a tunnel fails, it    may create a sinkhole.-   slide. The sliding or slippage of soils.-   slope creep. A natural landslide that occurs at a very slow rate.-   soil contamination. The introduction of a hazardous material into    the ground.-   soils subsidence. Soils that are unstable and sink.-   solid waste. Proximity to a facility that treats non-liquid trash or    other disposed materials.-   special motivation. A motivation that is unique to a specific buyer,    tenant or owner.-   state superfund. A property that has been placed on a specific state    list of environmentally contaminated properties.-   suicide. A property where there has been a suicide on the premises.-   tenant purchase. A transaction where the tenant purchases the    property that they are leasing.-   termites. A small insect that feeds on wood. An infestation of    termites can damage or destroy a wood-frame structure.-   title issue. Any concern or dispute over the ownership or title of a    property.-   tornado. A violent storm where various natural forces cause a strong    circular wind that can reach over 300 miles per hour. Like some    natural disasters, they are unpredictable and unpreventable, and    they cause indiscriminate damage, so they tend to not cause a    diminution in value to a particular property or neighborhood but    rather impact a large region.-   tower fall zone. The area that may be impacted in the event of a    tower falling.-   traffic noise. A property that is impacted by the noise generated by    street or freeway traffic.-   transactional conditions. Any one-time special motivations of the    buyer, tenant or seller.-   treatment-storage. A facility that stores or treats environmentally    contaminated materials.-   tidal wave. A large wave usually caused by an earthquake or an    underwater landslide. While unpredictable and unpreventable, they    tend to impact certain zones or areas.-   tunneling. Drilling or trenching for the placement of underground    passages for utility lines, subways, trains, roads, or other uses.    Tunnels can cause a diminution in value if the market perceives that    they may not be structurally sound or may fail in the event of a    seismic event, such as an earthquake.-   U.S. Marshall Sale. A sale by court order by the U.S. Marshall    office.-   UST Underground storage tank.-   volcano. A mountain that historically has erupted, or can erupt in    the future, and can cause landslides or other destruction. Like some    natural disasters, they are unpredictable, unpreventable, and cause    indiscriminate damage, so they tend to not cause a diminution in    value to a particular property or neighborhood but rather impact a    large region.-   water contamination. The introduction of hazardous materials into    the water or ground water.-   watershed. The drainage or collection of water on a site.-   wetlands. Areas that are inundated or saturated by surface or    groundwater, such as lakes, swamps, marshes, bogs, sloughs,    quagmire, wet meadows, river overflows, mud flats, lagoons, and    ponds.-   zoning. The constitution right of government to restrict the use of    a property through regulations.

APPENDIX B Non-Priority ID Glossary

-   abatement. Removal or the controlled release of contaminants.    Includes operations and maintenance (O&M), encapsulation, enclosure,    and removal.-   above-ground release. Any release of gasoline or other contaminants    to the surface of the land or surface water, such as from the    above-ground portion of a UST system or overfills.-   above-ground tank. A storage reservoir device that is situated above    grade so that the entire surface area, including the bottom, can be    visually inspected.-   ACM. Asbestos containing material.-   aeration. The introduction of oxygen into a contaminated liquid,    which creates gases that are then released.-   air and light diminution. The loss of natural sunlight or air space    due to the construction of improvements.-   air sample clearance test. Air monitoring at the completion of a    contamination abatement or remediation project.-   air stripping. An in situ groundwater remediation process.    Contaminated groundwater is pumped to the surface and processed in    an air stripping tower. The water flows over packing materials. The    contaminated water comes in contact with air and the contaminants    mix with the air. The contaminated air is released or filtered.-   amended water. Mixture of water and surfactant.-   aquatic flora. Any plant life associated with the aquatic ecosystem,    such as algae, seaweed, etc.-   aquifer. A subterranean geological formation that is capable of    supplying a significant amount of water to a well or spring.-   below-ground release. Any release of contaminants to the subsurface    or the groundwater, such as from an underground storage tank.-   benign condition. Any condition that occurs but has no impact on the    real estate associated with the event.-   benzene. A fuel additive that is 2% to 4% of gasoline; a known    carcinogen.-   blast zone. The area impacted by the explosion of a bomb, volcano,    or other situation.-   blight. A disease or injury of plants resulting in withering,    cessation of growth, and death of parts without rotting. Also, a    term to describe older neighborhoods with high crime rates.-   blowdown. The discharge of recirculating water for the purpose of    discharging materials within the system. This eliminates the buildup    of materials that could cause damages.-   brackish marsh. A marsh, bog, or swamp that receives an influx of    both salt and fresh water.-   brownfield. A large site that has been contaminated from operations    on the site. Upon remediation, it may be referred to as a    greenfield.-   BTEX. Benzene, toluene, ethylbenzene, and xylene—primary toxins of    soils and groundwater associated with petroleum products.-   carcinogen. A cancer-causing substance.-   casing. A pipe or tubing lowered into a borehole in order to support    the sides of the hole, or to prevent water or gas from entering or    exiting the hole.-   catastrophic collapse. The disastrous, sudden, and utter failure of    support structures or soils.-   cementing. The injection of cement slurry into a drilled hole or    behind the casing.-   condemnation. The right, as stated within the U.S. Constitution, of    the government to take property for the public good and upon the    payment of just compensation to the property owner.-   confining bed. A mass of impermeable or less permeable material    stratigraphically adjacent to an aquifer.-   confining zone. A geological formation that limits the movement of    water or other fluids.-   connection with identified uses. The association of a property with    contaminants or prior uses that lead to contamination.-   contaminant. Any physical, chemical, biological, or radiological    substance in the soil, water, or air.-   contamination. The polluting of air, soils, improvements, or    groundwater by the introduction of a hazardous substance into the    environment.-   continuous discharge. An emission that occurs without interruption    except for maintenance or other infrequent activity.-   contraction. Expansion of soils.-   corrosion inhibitor. A substance that is designed to form a    protective film against rust or other corrosion.-   cost issues. All costs related to the assessment, repair, and    ongoing stages of a detrimental condition analysis.-   covenant. A promise to use or not use a property in a specific way.-   current or past uses in the surrounding area. The external    obsolescence created by a historical or ongoing undesirable use    nearby.-   current use(s) of the property. The operations or applications to    which a property is being put.-   current uses of adjoining properties. The operations or applications    to which contiguous properties are being put.-   cut and fill. The removal (cut) of soil or the addition (fill) of    soil.-   daily discharge. The emission or discharge, in terms of mass, of a    pollutant in a 24-hour period.-   debris compost. The decay of debris and the resulting soils    subsidence it causes.-   deed. A document that records a loan that is secured with the    property.-   deferred maintenance. Routine property upkeep that has been    neglected.-   degraded wetlands. Swamps, bogs, marshes, etc., that have been    negatively altered by man.-   deluge. A sudden flooding or inundation of water.-   diatomaceous earth filtration. A water filtering process whereby a    coat or “cake” of diatomaceous earth filter media is deposited over    a membrane (septum) and water is passed through.-   differential settlement. Soils with differing compaction or    materials that settle to unequal levels.-   diminution in value. The lost value of real estate before (as if    impaired) and after (or upon discovery of) a detrimental condition.-   direct condemnation. The physical taking of property through the    process of eminent domain.-   discharge. The spillage, leakage, pouring, emitting, or dumping of    hazardous materials into land, air, or water.-   disinfectant. Any oxidant, such as chlorine, used to kill    microorganisms.-   disintermediation. A period when long-term interest rates are lower    than short-term interest rates.-   disposal. The discharge, deposit, injection, dumping, spilling,    leaking, or placing of any solid waste or hazardous waste into the    air, water, ground, or groundwater.-   disposal system. A system of man-made or natural barriers that    isolate spent nuclear fuel or radioactive waste or other    contaminants.-   distillation. A water purification technique that purifies water by    heating the water and condensing the steam. The process reduces salt    concentration but is ineffective in removing pesticides and volatile    organic contaminants such as benzene or chloroform.-   drought. The prolonged lack of rain or availability of an adequate    water supply.-   earthquake retrofit. Additional structural support added to the    improvements to provide the support necessary to withstand    earthquake destruction or to bring the property into conformity with    current earthquake building regulations.-   economic depreciation. A decline in the economy that negatively    impacts real estate values.-   economic disaster. A large-scale event that negatively impacts the    overall economy, which in turn impact real estate values.-   economic obsolescence. The loss incurred when the depreciated value    of the improvements, from a cost perspective, is more than the    market value.-   effluent. Treated liquid waste.-   egress diminution. The partial or total loss of the ability to exit    or leave a site.-   electromagnetic fields (EMFs). The electric forces emitted by power    lines or other electrical devices.-   encapsulant. Liquid substances that are applied to contaminants to    prevent their escape. Bridging encapsulants form a coating over the    contaminant's surface. Penetrating encapsulants soak into the    contaminants to bind its components together. Both types are    frequently used together.-   encapsulation. A contamination remediation process that encapsulates    the contaminants to prevent leaching and surface seepage of    contamination into either the air, groundwater, or storm drainage    system.-   enclosure. Construction of an air or watertight structure that    surrounds the contaminant.-   end removal. The removal of contaminants when the property is    eventually demolished.-   environmental impact report. A study required by governmental    agencies to determine the impact that a proposed development will    have on the surrounding areas.-   environmental lien. A restriction placed on a property for    environmental reasons.-   environmentally sensitive area. An area where the plant or animal    life or their habitat are either rare or particularly vulnerable.-   equipment decontamination enclosure system. A washroom, holding    area, and uncontaminated area for handling materials and equipment.-   ex situ. A remediation process that involves excavation.-   expansive soil. Soils that expand when moist.-   exposure. Contact with a contaminant through skin absorption,    inhalation, or ingestion.-   external depreciation. Any event or development located off-site    that negatively impacts the subject property.-   external obsolescence. See external depreciation.-   feasibility. The capability of a project or development to be    accomplished in a successful manner within a reasonable time.-   filtration. Water purification by screening out contaminants using a    sediment process, a filter, or a sieve.-   flash floods. Sudden-moving flood waters that are generally caused    by heavy rains over soils that are not capable of absorbing the    moisture.-   floodplain. The lowland and flat areas adjoining rivers, canyons,    lakes, and ocean waters that are prone to flooding.-   formaldehyde. A liquid that is used to preserve woods and other    materials and sometimes used in construction processes.-   fresh water marshes. Marshes where the water has concentrations of    salt less than five parts per 1,000.-   friable. Building materials, such as asbestos, that may be crumbled    by hand pressure.-   functional depreciation. See functional obsolescence.-   functional obsolescence. All losses to a property's value except for    external influences and physical depreciation—e.g., an outdated and    undesirable floor plan or design.-   general plan. A proposed outline for the overall development of a    city or other municipality that is written and issued by that    municipality. Also known as a master plan.-   generator. A site where the hazardous waste is produced.-   gentrification economics. Improvement and fixing-up of older    neighborhoods.-   geotechnical issues. Matters relating to soils or soils engineering.-   government incentives. A city's or other governmental entity's    enticement to develop or use a property in a particular manner,    which may alter the highest and best use of the property.-   government mandates. A city's or other governmental entity's decree    or order to develop or use a property in a specific manner.-   grading. Earth moving for the purposes of property development.-   groundwater. Water below the land surface or subsurface soils that    are saturated with water.-   groundwater contamination. The introduction of hazardous or toxic    material into the underground water supply or aquifers.-   groundwater seepage. Saturated soils that flow up to the surface.-   hazardous materials. A material that is determined by qualified    engineers to be poisonous, reactive, flammable, corrosive, toxic, or    that has been designed as such by a governmental or regulatory    agency.-   heavy metal. Uranium, plutonium, or thorium placed in a nuclear    reactor.-   HEPA. High-efficiency particulate air—e.g., HEPA filter or HEPA    vacuum—that filters asbestos fibers.-   hydric soils. Soils that are saturated with water at or near the    surface and are oxygen-deficient long enough to disrupt the growing    season.-   hydrophytic plants. Plants that grow in or near water, in wet    habitats, or in hydric soils.-   illegal use. Improvements that have been constructed without the    proper building permits.-   impaired value. The indicated value of a property upon the    application of one or more of the three detrimental conditions to    value.-   imposed condition. An act or forced event that affects value.    Includes long-term and permanent external depreciation.-   in-ground tank. A storage device where any portion is located below    grade, thereby preventing a visual inspection of the external bottom    surface.-   in situ. In place, referring to an on-site remediation process    without excavation.-   incurable condition. A detrimental condition that cannot be    economically or physically remedied.-   indoor air quality problem. A mechanical issue or construction    defect that results in inadequate air circulation, or a use within a    property that results in a nuisance or health risk to its occupants.-   ingress diminution. The entire or partial loss of the ability to    enter or access a site.-   initial removal. The up-front and immediate removal of contaminants.-   inner liner. A protective layer of material placed inside a tank or    container that helps prevent corrosion.-   inverse condemnation. The damages caused by an external issue or use    that does not physically impact the property.-   kangaroo rat. A rodent that has been designated as endangered by    some governmental agencies and thereby may create development    constraints.-   land contract. A contract to transfer property upon the payment of    the terms of a contract.-   land disposal. The placement of waste or contaminants on the land,    such as a landfill, surface impoundment, waste pile, injection well,    land treatment facility, salt dome or salt bed formation,    underground mine, cave, bunker, or vault.-   landfill. A site that is used for trash disposal. May cause    environmental problems or neighborhood nuisances.-   leach. To dissolve contaminants by percolating liquid in order to    separate the soluble components.-   leachate. A liquid, such as suspended compounds in liquid, that has    percolated through or drained from hazardous materials.-   lead. A chemical element that is considered environmentally    hazardous in some situation where it may be ingested.-   leased fee. The interests of the landlord. The rate specified in the    lease may differ from the market over time.-   lease option. A provision within the lease to extend the lease,    generally at the tenant's option, at a specified rate and for a    specified term.-   leasehold. The interests of the tenant. The terms of the lease may    differ from the market over time.-   levees. Embankments to protect flooding along rivers or other bodies    of water.-   lithology. The description of rocks, based on their physical and    chemical characteristics.-   lithosphere. The solid part of the earth below the surface,    including any groundwater.-   littoral zone. The area between the low tide water mark and the high    tide water mark.-   loading capacity. The maximum level of contaminant discharge that    water can receive without violating water quality standards.-   Malibu effect. A slang term used to describe the resilience of many    waterfront property values when repeatedly damaged by natural    forces.-   market resistance. The risk, if any, associated with the ongoing    stage of a detrimental condition analysis; includes the reluctance    on the part of the real estate market to buy a property that has    historically been damaged or tainted. Sometimes called stigma.-   matrix. Hard, non-friable material (e.g., concrete) that contains    asbestos.-   maximum contaminant level (MCL). The maximum level of contaminant    discharge without violating regulatory standards, usually mandated    by state requirements and referencing maximum levels of toxins in    drinking water.-   monitoring facility. Equipment installed to monitor groundwater    below or near an encapsulated site. Used to test if seepage or    leaching is occurring on an encapsulated site.-   monsoon. A violent storm with the characteristics of heavy rains and    strong winds.-   mortgage. Debt financing where the property is used as collateral.-   MRI release. The escape of magnetic fields from a medical    diagnostics device.-   MTBE. Methyl tertiary butyl ether, a gasoline additive.-   nature preserve. An area designated by governmental agencies to    remain in its natural condition, thereby preventing or restricting    its development.-   neighborhood blight. Urban decay within a community. May be an    imposed condition that is ongoing or may be cured and considered a    temporary condition.-   neighborhood nuisance. Any annoying or irritating external condition    or influence. May be permanent or temporary.-   no discharge of free oil. A discharge that does not cause a film,    sheen, or discoloration on the surface of the water or cause a    sludge or emulsion beneath the water surface.-   non-market motivation. Any special influence whereby a buyer,    seller, or tenant acts in a way that is not typical for the market.    For example, a property owner who is in financial distress may sell    the property for less that what he or she would have received under    normal circumstances.-   non-source property. A property that is contaminated, although the    discharge of the contaminant occurred on another property—i.e., not    the responsible party.-   normal property value. The market value of a property in an    undamaged condition and without consideration of any detrimental    condition.-   NPPL. National Priority Pollutants List, a list of common pollutants    caused by underground storage tank facilities.-   obstruction. The placement of an improvement in such a manner that    it interferes with the normal use of a property. A tree planted in    front of a gate would be considered an obstruction.-   oil-fuel tanks. Any tanks, both subterranean or above-grade, used    for the storage of any oil or fuel.-   oil seepage. The leakage of oil, possibly from natural underground    deposits or from leaking containers or plumbing.-   oil spill. The accidental release of oil, often crude oil, into the    environment.-   ongoing stage. The third stage in a detrimental condition analysis.    It includes all costs associated with a damaged property after all    repairs or remediation have been completed—e.g., additional    financing or insurance costs, use, and market resistance.-   operations and maintenance (O&M). An ongoing maintenance program for    contaminated properties. For example, for asbestos it could include    training, HEPA vacuuming, wet cleaning, and air monitoring. This is    also termed end removal, as the contaminants remain until the    eventual demolition of the building.-   PCBs. Polychlorinated biphenyls. Sometimes found in electrical or    hydraulic equipment.-   PCE. Perchloroethylene or tetrachloroethylene, nicknamed perk. A    solvent often used for dry cleaning and other uses.-   permeability. A measure of a material's ability to transmit water.-   pickleweed. A salt marsh vegetation.-   permit issues. Any issue were a question exists as to the proper use    of building or other construction permits as relating to the    improvements to a property. This includes improvements that were    constructed without a permit.-   pipeline easement. The right or privilege to install and maintain a    pipeline on a property. Can be considered a potential detrimental    condition if the market reacts negatively towards the risks    associated with a pipeline explosion or leak.-   plume. The areas that are saturated or impacted by underground    contaminants.-   prescriptive easement. The securing of easement rights through    adverse possession.-   PRG. Nonofficial preliminary risk goals set forth by the U.S.    Environmental Protection Agency regarding soil contamination.-   pollutant. A contaminant, such as dredged soil, solid waste,    incinerator residue, filter backwash, sewage, garbage, sewage    sludge, munitions, chemical wastes, biological materials, or    radioactive materials.-   potable water supply. A water supply that is fit for human    consumption.-   private REO. Property that has been foreclosed and owned by a    private lender.-   process wastes. Any designated pollutant resulting from a    manufacturing process.-   project incentive. The risk, if any, associated with the repair    stage of a detrimental condition analysis.-   protected species or vegetation. Any plant or animal that has been    designated by a governmental agency to be safeguarded. This    designation may limit or restrict development.-   quicksand. A soil type that creates a mire whereby a person or    animal walking over the area will sink. May both create a hazard and    limit the developability of a site.-   recharge. Any process whereby water is added to the saturated zone    of an aquifer.-   reciprocal parking easement. The contractual right of two adjacent    parties to share parking with the other.-   release. A spill, leak, emission, discharge, escape, leach, or    disposal from an underground storage tank into the soils, ground, or    surface water.-   repair stage. The second stage in detrimental condition analysis. It    includes all the costs of repairs or remediation resulting from a    detrimental condition, including the repair and incidental costs,    contingencies, use issues, and the project incentive.-   retaining slope. A mound of soil that is designed to hold back the    ground behind it.-   retaining wall. A wall that is designed to hold back the ground    behind it.-   retrofit. The renovation of a property to a higher standard. For    example, an old brick building may be retrofitted to withstand an    earthquake.-   reverse osmosis. A water purification process used to remove salts,    such as for sea water. The process yields drinking water and salt    residues.-   riparian habitats. Areas in water courses that are the home of    associated animal and plant life.-   risk issues. All risks associated with a detrimental condition    analysis, specifically within the assessment stage (uncertainty    factor), the repair stage (project incentive), and ongoing stage    (market resistance).-   rolling option. An option to lease or purchase a property that    continues or “rolls over” based upon specified conditions.-   salt flat. A site with poor drainage where the water evaporates,    leaving salt behind.-   RTC Sale. The sale of property by the Resolution Trust Corporation.-   Santa Claus factor. A slang term used to describe a situation where    the repaired property is better than the improvements that were    damaged or destroyed.-   saturated zone or zone of saturation. Soils in which all voids are    filled with water.-   sea water percolation. Underground sea water that passes through    soils and seeps to ground level.-   sedimentation. A prefiltering process for removal of solids by    gravity or separation.-   shear strength. An engineering term used to describe a soil or    structure to resist applied forces that causes or tends to cause two    contiguous parts of a body to slide relative to each other.-   sheen. A glistening appearance on the water surface from oil    residue.-   Sick Building Syndrome. See indoor air quality problem.-   site grading. The leveling of land for development.-   slow sand filtration. A process whereby water is drained through a    bed of sand at low velocity, removing particles by physical and    biological mechanisms.-   sludge. A solid, semisolid, or liquid waste generated from a waste    water treatment plant, less the treated effluent.-   soft water. Water that contains low levels of dissolved minerals,    such as salts, calcium, or magnesium.-   soil. All unconsolidated materials naturally found at the surface of    the earth, such as clays, silts, sands, and small rocks.-   soil compaction. Fill soils that have been pressed to avoid    subsidence.-   soil excavation. A type of remediation process that involves the    digging of contaminated soil from the subsurface, where it is    treated or disposed of.-   solder. A metal compound used to seal plumbing joints. Solder    compounds containing lead are now banned.-   stigma. See market resistance, project incentive, or uncertainty    factor.-   storage tanks. Aboveground or underground tanks that are used for    storing fluids, such as gasoline or propane.-   stratum. A sedimentary bed or layer that generally consists of the    same kind of soils or rock material.-   stressed vegetation. Plants that have been damaged.-   sulfates. A potentially corrosive, and naturally forming, substance    found within certain soils. May cause concrete foundations to erode.-   super-surface construction defect. The failure to properly construct    some component of the improvements.-   surface water. All water that is open to atmosphere.-   surfactant. Wetting agent that enhances the penetration of water.-   surging soil. Soils that are upheaving.-   SVOC. Semi-volatile organic compounds.-   TCA. Trichloroethane, a solvent.-   TCE. Trichloroethylene, or trichloroethene, a solvent.-   takedown. The purchase of property, often large tracts of land, in    phases.-   temporary construction easement. The incidental and interim use of a    property or a portion of a property, through eminent domain, to use    the property while construction is underway.-   tidal influence. An oceanfront area that is affected by tides.-   torrent. A downpour of rain that may cause flooding.-   toxic waste. The disposal of a hazardous material in such a way that    it threatens plants, animals, or humans.-   toxicity. The level to which a substance is toxic.-   TPH. Total petroleum hydrocarbons, typically measured by levels of    BTXE.-   traffic diminution. The loss of vehicular or pedestrian traffic. Can    be either a permanent or temporary issue.-   treatment zone. A soil area of the unsaturated zone of a land    treatment unit within which hazardous constituents are degraded,    transformed, or immobilized. TRPH. Total recoverable petroleum    hydrocarbons.-   uncertainty factor. The risks, if any, associated with the    assessment stage of a detrimental condition analysis.-   unchlorinated solvents. Cleaning solutions to which no chlorine has    been added.-   unidentified substance containers. A drum or other container holding    unidentified substances suspected of being hazardous or containing    petroleum products.-   unimpaired value. The value as if no detrimental condition exists.-   unsaturated zone or zone of aeration. The area between the land    surface and the groundwater table.-   uplands. An area above and adjacent to the high tide level.-   urban decay. The deterioration of infrastructure and improvements    within a metropolitan area.-   use issues. All losses associated with the use of the property    during the assessment, repair, and ongoing stages of a detrimental    condition analysis.-   USDW. Underground source of drinking water.-   utility disruption. The temporary interruption of utilities, such as    water, electricity, gas, etc.-   utility easement. The rights granted to use a portion of a property    for utility lines.-   vacuum extraction. A type of remediation process that removes the    majority of contaminants through the use of one or more suction    wells, or a series of air injection and suction wells. The method is    typically less disruptive than soil excavation and may be less    expensive than other techniques involving excavation.-   vandalism. The intentional defacing or destruction of property.-   variance. The right granted by a city or municipality to develop or    use a property in a way that varies from the typical or stated    requirements.-   view diminution. The partial or entire loss of a view amenity.-   violent crime. A property where a violent crime was committed on the    premises.-   VOC. Volatile organic compounds.-   waste water. A liquid (including storm water) that discharges into a    tunnel, drain, ditch, or stream.-   water intrusion. The undesired influx of water onto a site or into    improvements.-   water table. The upper level of the saturated zone of groundwater.-   worker decontamination enclosure system. A series of three temporary    rooms for entering or exiting a contaminated work site. They are the    clean room (adjacent to the outside or uncontaminated area), the    shower room, and the equipment room (dirty room).-   wood rot. A situation where a wood structure has become moist and    decayed.-   x-ray release. The undesired discharge of radiograms.

1. A real estate disclosure reporting method comprising the steps of:identifying a condition category; creating a disclosure form listing aplurality of items of disclosure that relate to the condition categoryresearching a particular property to determine a plurality of known onesof the items of disclosure; and indicating the known items of disclosureon the disclosure form; and generating a report of the known items ofdisclosure.
 2. The real estate disclosure reporting method according toclaim 1 wherein the condition category is at least one of site,environmental and natural conditions.
 3. The real estate disclosurereporting method according to claim 2 wherein the researching stepaccesses a plurality of public agency databases over the Internet. 4.The real estate disclosure reporting method according to claim 3 whereinthe indicating step comprises: identifying an indicator area proximateeach of the items of disclosure; and marking the indicator areaaccording to the known items of disclosure.
 5. The real estatedisclosure reporting method according to claim 4 wherein the generatingstep comprises downloading a report on electronic media via theInternet.
 6. The real estate disclosure reporting method according toclaim 5 wherein the items of disclosure comprise at least one oflandslide and liquefaction conditions.
 7. The real estate disclosurereporting method according to claim 5 wherein the items of disclosurecomprise at least one of Superfund, LUST and oil and gas wellconditions.
 8. The real estate disclosure reporting method according toclaim 5 wherein the items of disclosure comprise at least one of floodand earthquake conditions.
 9. A real estate disclosure reporting methodcomprising the steps of: researching a particular property to determinea plurality of known items of disclosure; compiling the known items ofdisclosure on electronic media; identifying at least a portion of theknown items of disclosure with a condition category; and downloading theelectronic media to a user over the Internet.
 10. The real estatedisclosure reporting method according to claim 9 wherein the researchingcomprises accessing at least one database over the Internet.
 11. Thereal estate disclosure reporting method according to claim 10 whereinthe at least one database comprises at least one of a Federal Superfunddatabase and a Leaking Underground Storage Tank (LUST) database.
 12. Thereal estate disclosure reporting method according to claim 10 whereinthe known items of disclosure comprise at least one of flood, earthquakefaults, landslide and liquefaction conditions.
 13. The real estatedisclosure reporting method according to claim 10 wherein the electronicmedia utilizes a markup language for downloading to a user over the Web.14. The real estate disclosure reporting method according to claim 13wherein the known items of disclosure are designated on the electronicmedia with one of a checkmark or an “X” placed within a check box.
 15. Areal estate disclosure reporting method comprising the steps of:identifying a subject property; accessing a plurality of databases overthe Internet; the databases having subject property related data;determining known items of disclosure regarding the subject propertyfrom the databases; reporting the known items of disclosure onelectronic media; and downloading the electronic media to a user overthe Internet.
 16. The real estate disclosure reporting method accordingto claim 15 wherein the databases comprise at least one of governmentrecords and police records.
 17. The real estate disclosure reportingmethod according to claim 16 wherein the known items of disclosurecomprise at least one of site conditions, natural conditions andenvironmental conditions.
 18. The real estate disclosure reportingmethod according to claim 17 wherein the electronic media reportcomprises a web page formatted with a markup language.
 19. The realestate disclosure reporting method according to claim 18 whereinreporting comprises indicating the known items of disclosure with adesignation placed within a check box.
 20. The real estate disclosurereporting method according to claim 19 wherein the downloading comprisescommunicating the web page to a user browser.